In this agency report released by Hubspot, the top three challenges faced by any agency focusing on scaling and growth are:
- 55% of agencies say that low sales are their biggest challenge.
- Maintaining cash flow is a top challenge for 31%.
- 28% consider the competition for experts to be their top challenge.
Many of these challenges are caused due to “half-truths”, misunderstandings or straight agency myths existing in the market. It’s a given that you must avoid these myths if you are planning to scale your agency.
For instance, one of the most common agency growth myths is you have to have a great fun room and other extravagant benefits to attract great teams. When it comes to hiring industry experts for your agency, having such benefits is only secondary. I am sure you’ve never heard an expert say that “I didn’t join this agency because it didn’t have a fun room.”
In this post, we will look at the most common agency myths that you must be aware of to ensure growth and scaling.
The client is always right!
There is a difference between being a “yes” person and doing what is right for your client. In simple words, agreeing to everything that your client asks for may not be the right way to go.
For instance, if a client comes to you with an extremely low budget & asks to set up an eCommerce store for them. Let’s say that you can execute it but you know it’s not the right option for your client. What do you do?
Do you suggest a better option by listing out problems with the client’s demands? Or do you just say ‘yes’ to whatever and deliver whatever the client asks?
Web & digital agencies, especially in their budding years, are afraid to counter a client’s suggestions. What you must understand is if a client is coming to you with their project, you are an expert and it’s up to you to choose the most profitable solution for them.
And if you are just a ‘yes’ person, it might come in the way of scaling your agency.
For instance, every agency understands that client retention is important to fuel its growth. And what do you think will account for a better relationship with your client – a cheap & low-converting solution they are demanding or a little costlier option with a better conversion rate?
The diversity of thoughts to include your expert opinions & unique ideas helps your clients to excel in today’s competitive landscape. And saying “yes” to each one of your clients’ demands might not be the right way to go if you want to grow your agency!
Support & maintenance work is unprofitable.
Most agencies think that once a web or mobile app is delivered, the project is done. Think web/app maintenance!
Everything about selling services/products online keeps changing. You, as a web agency owner, know this better than anyone else. What is trending right now, might become obsolete a year or even 6 months from today!
Did you know that 89% of users shop with a competitor after visiting a site with poor user experience (UX)?
While “maintenance” and “support” might not sound as exciting for your team, they are great to ensure consistent revenue from your existing clients and play a crucial role in your agency’s growth.
On average, your agency can make up to $300-$400 (or even up to $1200) per client per month just by offering app & website maintenance services. This can include anything from fixing errors & making UX changes to updating security patches and more to ensure smooth shopping or browsing experience on your clients’ website/app.
Offering support & maintenance services will not only ensure client retention but also will increase the customer lifetime value of your agency.
Only big agencies can attract big clients.
Every agency dreams of having big brands as their clients but most of them don’t even try acquiring them in their starting years. You have to be big to get big clients, right? Wrong!
In your battle against big agencies, there are many things you can offer what big agencies can’t!
For instance, you can win great clients by offering a touch of personalization in your services and great customer service. Big brands understand the importance of individual attention and access to leadership in your small agency.
You can promise your undivided attention to your client’s project. With fewer dedicated resources, your agency can not only deliver better results but can do so in a truncated timeline!
This is what you, as a small agency, can do to win big brands as your clients.
- Create a portfolio of solutions related to your web/app development services to showcase your talents and pitch to prospective clients.
- Hire or team up with industry experts in your team who are well-known for their work.
- Make a pool of free-to-use resources – tools, eBooks, case studies, etc., to gain visibility in your industry.
- Encourage your clients to get word-of-mouth referrals by offering perks like discounted prices or added services.
Your agency can grow without streamlined processes!
I have seen many agencies working inefficiently and failing to meet project deadlines because of ill-defined business processes.
Small & middle-scale agencies make the mistake of relying more on teams than well-defined & scalable processes. This is why this myth can be one of the biggest hurdles in your agency’s growth!
Some say that they don’t have enough clients to define processes while others just want to get the job done in some way or the other. Where do the streamlined processes come in this picture?
With streamlined processes, you can significantly cut the average execution time in your agency by eliminating repetitive tasks. This leads to better utilization of your resources and the completion of your projects on time.
Defining and measuring processes is a crucial part of scaling your agency. This not only shortens the adaptation curve of a new employee to your team also allows you to meet tight project deadlines of your clients.
Did you know that only 4% of agencies measured and managed their documented processes?
Here are a few ways you can streamline processes to fuel the scalability and growth of your agency:
- Let’s say that you are getting more & more e-Commerce projects. What you can do to streamline the development process is to create shared modules of the most-used plugins. Creating codebases as such can help your team to write code or find plugins for the same functionalities again and again.
- One of the well-tested ways to speed up the task execution process is by using task management, communication & collaboration tools!
Partnering with white label service providers is a waste of time.
I have seen many small & large scale agencies hesitate while partnering with white label providers because of this myth. Is partnering with a white label provider really a waste of time? The short answer is – NO!
A few requirements that you must fulfill to scale & grow your agency are:
- Setting up top-tier teams
- Industry specialization
- Staff scalability
You need a huge investment to comply with any of these requirements if you go about it the traditional way – handling everything in-house. Partnering with a white-label provider can help both small and large scale agencies to scale & grow in the most efficient way possible.
Here’s how a white-label partner can help you with the above-mentioned hurdles in your agency’s growth.
- Did you know that 44.3% of web & digital agencies agree that competition for talent/expertise is one of their key challenges? Partnering with a white-label provider gets industry experts to work on your project/services without asking for credit.
- Industry specialization is a crucial part of scaling your web/digital agency. A reputed white label provider in your industry can help you stay ahead of your market competitors by delivering top-notch services!
- Another challenge every agency faces when scaling is with the scalability of their teams. Finding a white-label provider helps you to reduce service delivery & overhead costs without interrupting the timely delivery of your projects.
If you believe in any of the above-mentioned myths, the chances of scaling and growing your agency can be full of hurdles. And, you, as an entrepreneur, understand that stagnation is the death of any business.
As mentioned, partnering with a white-label provider will fuel your agency’s growth and present scaling growths while reducing service delivery, operational & overhead costs. This is where Resourcifi can help you!
Resourcifi is a white label provider of web & app development, digital marketing, and software testing services. Partner with us to reduce service delivery costs and manage overheads of your agency. Contact us to know more!